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Technical Error Forces Blue Shield of California To Pay $80 Million in Rebates

The health care provider Blue Shield of California will soon be paying tens of millions of dollars back to its members, the result of a technical error the company made in 2014.

Large health care providers collect money from premiums that individuals, who’ve enrolled in a plan through Covered California, and businesses who provide health care packages to their employees pay.

Under the federal rules of the affordable care act, health care providers like Blue Shield of California have to spend at least 80 percent of that money they collect on medical care for enrollees.